Volkswagen’s sole U.S. assembly plant was spared any fallout from the company’s wildly expensive diesel emissions scandal, but the upcoming North American Free Trade Agreement negotiations could see VW throttle back its future plans for the facility.

The Chattanooga plant, which builds the Passat and Atlas, has seen $900 million in investment over the last couple of years. More models are anticipated, and the automaker said it expects the plant to reach full production by 2020. However, recent threats of an import tax to be levied on German automakers has VW brass in wait-and-see mode before sending any new models or money to Tennessee. (Read More…)

Call it the Americanization of Mercedes-Benz. While the German automaker has assembled C-Class, GLE and GLS models in Alabama for some time (and, more recently, Sprinters in South Carolina), recent pressure from the Trump administration has led the automaker to reconsider what goes into those vehicles.

After being characterized by President Trump as “very bad,” it’s possible other German automakers operating in the U.S. could follow Mercedes’ lead in a bid to avoid further heat. (Read More…)

Amid stagnating U.S. sales, a crash-dive in China, and a product lineup not optimally suited for growth, Hyundai is furiously crafting a salvation plan.

In North America and other utility-loving countries, the strategy is clear: more crossovers and a significant product shakeup. The little Kona is already on the way, though perhaps not as quickly as Hyundai had hoped.

China, however, presents a serious problem for the automaker. What was supposed to be a growth market for the company has now turned into the opposite. Hyundai’s share of the market has shrunk to 5 percent from last year’s 8.1 percent, which was down from years past. In March alone, after news of South Korea’s installation of a U.S.-supplied anti-missile defense system, Hyundai and Kia sales dropped 52 percent.

Determined to make the Chinese fall back into love, the automaker has a plan brewing. (Read More…)

As the clock counts down to the beginning of talks aimed at revamping the North American Free Trade Agreement, automakers in Mexico, the U.S. and Canada know one thing they don’t want to see changed — rules of origin.

Auto manufacturers must abide by minimum regional (NAFTA-wide) content rules in order for vehicles to remain free from import tariffs. President Trump’s proposed reforms aim to benefit U.S. companies, but could lead to greater costs heaped onto automakers — something no profit-minded company desires.

Naturally, automakers wants their feelings known well before the three countries get down to brass tacks. (Read More…)

Hyundai, which found itself lagging behind its rivals in the lucrative crossover and SUV market and figured it should do something about it, is having trouble getting its desperately needed subcompact crossover into production.

The 2018 Kona, which we’ve so far seen only a portion of, is part of a better-late-than-never product push by the Korean automaker. A new small crossover was needed to to mine a growing segment and boost Hyundai’s flagging U.S. sales, but the reality of building cars in Korea has thrown up a roadblock. (Read More…)

In its global push for profitability, General Motors plans to yank the Chevrolet brand out of the hands of Indian consumers.

The automaker announced a wave of restructuring in overseas markets yesterday, a large part of which is the cancellation of nearly $1 billion in investment in India and the pull-out of its only brand. Until recently, GM had hoped to cater to the country’s growing middle class with a new line of region-specific Chevy models.

GM also plans to sell its South African division and cut back on staff in Singapore. The move will help the automaker free up money to funnel towards its biggest markets — North America and China. (Read More…)

Like floodwaters pooling in a reservoir, unsold General Motors vehicles are getting close to breaching the dam. Not since November 2007 has the automaker held so many vehicles in reserve, though GM claims there’s nothing odd about the buildup.

With several updated models either imminent or on the way, it would make sense for GM to stock up in order to keep dealers and customers happy during production gaps. In this case, however, the numbers don’t seem to add up. (Read More…)

General Motors hasn’t made an official announcement about the new product destined for Ontario’s Oshawa Assembly plant, only saying that pickups would be sent there for final assembly. However, much like with Ford’s returning Bronco and Ranger, it often comes down to union brass to spill the beans about product allocation.

In this case, the union representing both autoworkers and employees at a seat supplier has provided proof of Oshawa’s new product. Two truck models snatched out of Oshawa by GM’s 2009 bankruptcy will indeed return. (Read More…)

Lost amid the automaker’s newfound focus on bringing as many utility vehicles to global customers as possible, Volkswagen’s stalwart Jetta soldiers on without a diesel option, wearing more or less the same duds it donned for 2011. A mild — some would say unnoticeable — refresh came in 2016, but the Jetta’s U.S. sales have continued to slide at a remarkably steady rate ever since the current generation’s debut.

Naturally, Volkswagen wants to arrest the plunge. As part of its newly crafted product strategy, the automaker plans to find time for a new Jetta among all the crossovers. (Read More…)

A General Motors plant once described as being on life support might not be out of the woods yet, but there’s a new ray of light at Oshawa Assembly — Canada’s oldest auto factory.

The plant’s supply of models has dwindled in recent years, with only the Chevrolet Impala and aging Cadillac XTS sharing space with the soon-to-depart Buick Regal. For years, Oshawa’s Consolidated Line handled final assembly of Chevrolet Equinox overflow models from GM’s CAMI plant, but supply will dry up this summer as the next-generation model becomes a CAMI-only deal.

Enter a hazy GM promise to deliver pickups for final assembly. While GM hasn’t confirmed that Chevrolet Silverado or GMC Sierra models are destined for Oshawa, at least one truck certainly is. The first truck shift hasn’t yet begun, and already the local union is alerting workers to a second. (Read More…)

Tesla Motors is headhunting engineers from Mexico to work on automated equipment at its Freemont, California factory. While the brand can still call the forthcoming Model 3 “the most American” car in the world — once it takes delivery of Nevada-produced 2170 battery packs — it might not be able to make the same claim for its workforce.

The brand has had union troubles with the German robotics unit supplying the automated assembly lines essential for the Model 3’s timely production. While the recruitment effort in California may not be a direct response to that, it is definitely part of Tesla’s efforts to ensure it can adhere to the timetable it has set for the electric vehicle. The company has preorders out the wazoo and wants to build 500,000 cars a year at the Fremont plant by 2018, which requires a sextupling of 2016’s production figures.  (Read More…)

While nothing is set in stone just yet, Mitsubishi should have a blueprint for its U.S. product strategy as early as September. The automaker, recently enlivened by its entry into the Renault-Nissan Alliance, suddenly finds itself with new options on the table as it plots a course towards greater U.S. market share.

Part of that strategy will likely mean covering segments now left empty in the brand’s product lineup. Before entering the Alliance, Mitsubishi’s main goal was getting more utility vehicles out the door, and that will remain the company’s growth driver in the near future, says chief operating officer Trevor Mann.

Still, the newfound ability to share components and platforms with Nissan opens the door to interesting new possibilities, and Mann knows what he wants. (Read More…)

Last week, General Motors’ long-idled Venezuela assembly plant fell into the hands of the country’s autocratic government, sparking the automaker’s exit from the strife-ridden nation.

With its material assets out of its hands, the automaker’s Venezuelan subsidiary jettisoned the plant’s entire 2,700-person workforce today, Reuters reports. It did so in as abrupt a manner as the takeover itself. Meanwhile, the government wants to chat. (Read More…)

It’s no secret that the success of Tesla’s forthcoming Model 3 will dictate its position as a mainstream automaker for the foreseeable future. Tesla’s current status as the most valuable carmaker in the United States is riding, almost entirely, on the problem-free assembly of its “affordable” EV this summer. So, when one of its German suppliers threatened to go on strike earlier this month, you can imagine the series of panic attacks CEO Elon Musk probably suffered.

Last week, the company’s recently acquired industrial robotics unit Grohmann began labor negotiations over insufficient wages and Tesla’s decision to suspend all contracts that didn’t pertain specifically to the Model 3. And, to ensure things went his way, Musk has become directly involved in the process.

(Read More…)

Earlier this month, we detailed the plight of a Toronto-area man whose newly delivered Tesla Model S 90D — a six-figure vehicle boasting cutting-edge technology — arrived from the factory with a sizable crack in the A-pillar.

Because the A-pillar forms part of a one-piece aluminum side member, the defect represented a structural fault that couldn’t be ignored. It wasn’t the kind of PR Tesla wanted, especially as it ramps up production (and stock value) ahead of the Model 3 launch, and it certainly wasn’t something a first-time owner and admitted Tesla fan wanted to find.

After airing his story on the Tesla Motors Club forum, the owner provided TTAC with updates on his vehicle’s status. (Read More…)